How NHIS squandered over N6.8 billion on illegal allowances – Audit Report

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The staff and management of Nigeria’s Health Insurance Scheme (NHIS) between 2016 and 2017 helped themselves with several ‘irregular’ and unapproved allowances totalling N6.8 billion, a recently released audit report has revealed.

These infractions were recorded during the reign of Usman Yusuf, the controversially sacked NHIS Executive Secretary, according to the 2017 Annual Audit from the Office of the Auditor-General of the Federation (OAGF).

The report adds a new layer to the barrage of allegations of fraudulent activities that tainted Mr Yusuf’s trenure.
Illegal allowances

The 2017 report, which is the latest by the auditor-general, listed several irregular allowances within the period under review.

They include Upfront Allowance; Upfront differential Allowance; 13th Month Salary Allowance; Pre-retirement Overseas Training Allowance; and Sitting Allowance.

The above payments totalling N4.9 billion violated Public Service Rule 130102, as they are not part of the allowances listed as payable to officers in the Federal Public Service, the report found.

The OAGF submission revealed that these allowances were paid without providing approvals of the National Salaries, Income and Wages Commission, contravening the act of the commission.

The report said differential payment is “illegal and alien” to the public service.

Another N1.8 billion was paid to staff as ‘administrative allowances; Children Education Allowances; and domestic allowances’.

These payments were not approved by the relevant authorities, contravening 2004 circular which states that “all self-funded federal Parastatals and Agencies which wish to monetise their fringe benefits should always submit the proposal package to the National Salaries, Income, and Wages Commission for necessary evaluation and approval before implementation”.
Shocking sleaze?

Besides irregular payments to staff, the report said the federal health insurance office engaged in at least another 13 illegal financial dealings amounting to N748 million during the period under review.

READ ALSO: National Health Dialogue: How states implement health insurance programmes

The scheme spent a total of ₦355 million on capital projects which were not appropriated for in 2016 and 2017 Capital Appropriation Act – a practice “contrary to Financial Regulations 417”, a further breakdown of the document revealed.

According to the report, NHIS also spent ₦161 million on International travels ”without any evidence of approval by the Head of Service of the Federation.”

Similarly, ₦20 million was paid to retiring officers to attend pre-retirement workshops outside Nigeria.

The report said further examinations revealed ”there was no letter of invitation/admission or certificates of attendance from the various institutions where the conferences and training were held.”
NHIS Head Office used to illustrate the issue.

Also, there were no air tickets and visas attached to prove that the officers embarked on the training.

The NHIS was equally accused of paying N72 million and N31. million respectively for the verification and accreditation of Health Maintenance Organizations without any form of evidence to confirm if the verification and accreditation exercises took place.

The report observed that several vehicles were illegally allocated to the Executive Secretary, ”his personal aides and allies”.

The AOGF highlighted several extant regulations contravened by the aforementioned irregular financial dealings. It recommended a total refund in most cases.
Agency steeped in fraud

The 2017 OAGF report has shed more light into several accusations of fraud that characterised Mr Yusuf’s reign at the NHIS.

In his three-year stint (2016 to 2019), the controversial official was sent on suspension twice within a year; accused of fraud, gross misconduct, insubordination and continuous infighting with staff and management of the scheme.

In November 2018, the governing board of NHIS raised an alarm that the agency was near a “tipping point” and may collapse within the next three years.

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Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.

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